LIT COMMENTARY
We cannot keep up with sanctioned Houston lawyer Ray Shackelford’s personal issues, including tax evasion, foreclosures, loans, liens, debts and schemin’. “Piercing the corporate veil” refers to a situation in which courts put aside limited liability and hold a corporation’s shareholders or directors personally liable for the corporation’s actions or debts. Veil piercing is most common in close corporations.
We’ve recently been seein’ a lot of Ray Shackelford in foreclosure filings and we’ve written about his vexatious conduct in those matters. That led us to decide to dig a little deeper into his business dealings.
In our ‘family’ related articles involving Ray and Althea Shackelford, there were 3 properties which we highlighted;
(1) The Ozark Residential Property, which we believe to be his parent(s) property
(2) The Ivanhoe Street Residential Property, which we believe to be his residence
and
(3) Shackelford’s Commercial Property at Southmore Blvd, where he operates his law office.
What the irrefutable evidence confirms: Ray L. Shackelford is a crooked, lyin’ lawyer and his wife, Charlene Shackelford aka Charlene Daniels is equally complicit, a swindler and a liar.
LIT maintains Ray Shackelford FRAUDULENTLY transferred the property to his client and friend at Southwest Wholesale, LLC, Anthony Hutchison in April 2019 because he has so much debt and litigation associated with the residence – he was about to lose his main residence to foreclosure.
The only problem is Anthony Hutchison has been indicted and Ray is now left with a difficult issue, what to do with the Ivanhoe property. Ray Shackelford tries to sell the home, but with all that debt and no equity, he’s way overpriced the property and subsequently pulled it from the market.
What LIT can confirm – Shackelford and Hutchison are very close and on it’s face, the fraudulent transfer of the Ivanhoe property is a conspiracy to defraud those seeking recovery of the massive debt owed in taxes, loans and liens.
Before we begin, a quick disclaimer about LIT’s slogan, “No Bull. Just the Truth.” is in no way associated with the Shackelford’s et al.
“Just The Truth” Superbowl AIDS Charity Event at Hotel ZaZa (2017)
SKIPPIN’ THE BILL ARE RAY SHACKELFORD & CHARLENE SHACKELFORD [DANIELS] AND THEIR ENTITY “POMP & CIRCUMSTANCE”
Z RESORTS MANAGEMENT L L C vs. SHACKELFORD, RAY (INDIVIDUALLY AND D/B/A POMP & CIRCUMSTANCE)
3241 Ozark Street, Houston, TX, 77021
THIS PROPERTY HAS BEEN SUBJECT TO FORECLOSURE FOR OVER 13 YEARS
LIT has uncovered this address is and has always been the registered address for Ray Shackelford’s law firm, per State of Texas filings. The majority of Ray’s annual franchise tax submissions were signed off by Natasha Martinez, now a realtor, formerly a tax preparer. Natasha Martinez is well connected to Ray as a former client and you can learn more about her in our recent article about the Ozark Property and Ray’s latest move(s).
Ray, his firm, consortium entity along with Charlene Daniels [Shackelford] litigation re 3245 Ozark St which leads Daniels to file for Bankruptcy protection in SDTX.
4743 Ivanhoe St, Houston, TX 77027
OWNERSHIP TRANSFERRED TO SOUTHWEST WHOLESALE, LLC [ APR 12, 2019]
LIT reviewed the HCAD ownership for this property and for the years 2012-2019 it was in the name of Ray’s law firm, with two naming conventions applied in two recordings. We could only find one version at TX SOS, namely Shackelford & Associates, LLC.
Department of Justice
U.S. Attorney’s Office
Southern District of Texas
Friday, August 28, 2020
Tax preparer sent to prison after causing more than $3 million in fraudulent tax returns
HOUSTON – A suburban Houston-area man has been ordered to prison following his convictions of 15 counts of fraud and tax violations, announced U.S. Attorney Ryan K. Patrick.
A Houston federal jury convicted Winfred Fields Feb. 13 following a two-week trial.
Today, U.S. District Judge Ewing Werlein Jr. handed Fields a 109-month sentence to be immediately followed by three years of supervised release.
Fields operated tax and bookkeeping businesses from an office on Richmond Avenue in Houston for many years under the business names Fields Enterprises, Your Tax Professionals and The Tax Boss.
At trial, the jury heard Fields participated in a scheme involving the submission of U.S. Individual Tax Returns on behalf of foreign people working on vessels on the Outer Continental Shelf of the United States.
These crewmembers were engaged in oil and gas exploitation activities in the Gulf of Mexico.
“In order to enrich himself and line his own pockets, the defendant mislead his clients by falsely claiming an international tax treaty was justification for amending their tax returns,” said Special Agent in Charge D. Richard Goss of IRS-Criminal Investigation’s (CI) Houston Field Office.
“As shown by today’s sentencing, this type of deceit will not go unpunished. IRS-CI will continue to protect the public by pursuing unscrupulous tax return preparers.”
“Tax fraud schemes have been around for many years,”
said Inspector in Charge Adrian Gonzalez of the Houston Division of the U.S. Postal Inspection Service (USPIS).
“USPIS is committed to working with our law enforcement partners to ensure the U.S. Mails are not used as a tool to facilitate these fraudulent schemes. The arrest and sentencing of Winfred Fields was a direct result of the collaborative efforts between the USPIS and IRS-CI.”
At trial, the evidence showed Fields falsely claimed workers were exempt from U.S. tax under a tax treaty between the United States and the United Kingdom, Spain or New Zealand. The employing companies had previously provided to the IRS withholdings from the worker’s wages and reported the income to the IRS.
However, Fields submitted amended tax returns as well as original nonresident tax forms 1040NR claiming a refund of the entirety of the amounts paid in as U.S. taxes for various tax years including 2007 through 2012.
Fields charged a fee of $2,500 for each crew member’s first return and required a $1,000 fee for each return thereafter.
He required direct receipt of the refunds so he could negotiate the checks and take his fee off the top. Fields had some refund checks deposited directly into one of several bank accounts he maintained.
Alternatively, he cashed the checks at a Houston check cashing business or had the checks deposited into one of several attorney trust accounts three different Houston lawyers had maintained.
Fields gathered the check proceeds or deposited them into the attorney trust accounts after paying a fee to the check cashing business and the attorneys for the service of cashing the U.S. Treasury checks.
Fields deposited the proceeds in one of several bank accounts he utilized during the scheme.
Fields agreed to provide the remainder of the refund proceeds to the foreign clients.
He did that for a while, but ultimately stopped forwarding any money to the workers.
As those individuals began contacting him to ask for updates on their refund claims, he repeatedly sent misleading and materially false responses to their questions.
The jury heard that Fields fraudulently obtained $3,097,974.19 in tax refunds from the IRS and kept approximately $1,302,271.75 for himself.
The defense attempted to convince the jury he acted in good faith and believed the wages were exempt.
He also claimed he was trying to pay the crewmembers their refunds but just got behind.
The jury rejected Fields’ contentions in their verdict and found him guilty as charged on all 15 counts.
Fields was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the future.
IRS – CI and USPIS conducted the investigation. Assistant U.S. Attorneys Melissa Annis and Charles Escher prosecuted this case.
Topic(s):
Financial Fraud
Tax
Component(s):
USAO – Texas, Southern
Updated August 28, 2020
A Bookkeeper with Her Own Tax Delinquency Issues
WINFRED FIELDS, SHACKELFORD's OLE TAX PREPARER, SENTENCED TO 9 YRS PRISON FOR TAX FRAUD IN 2020
In December 2019, the ownership changed to Southwest Wholesale, LLC and so we delved in deeper. Who is this company? We quickly discovered the registered agent for the last decade is none other than Ray and his law firm.
However, Ray’s State registration form for Southwest would be legally inaccurate, as he listed his company business address on the form, but legally his own company recorded the address as the Ozark property.
The sole Director of Southwest is Anthony Hutchison [Deborah Hutchison was initially listed, but she would file for divorce in 2015]. LIT soon discovered Anthony Hutchison was indicted in December 2021 for bribery and a host of other federal charges listed later in this article.
HOUSTON – The former chief operating officer of the Houston Independent School District (HISD) is facing new tax charges in relation to a bribery scheme, announced U.S. Attorney Jennifer B. Lowery.
A federal grand jury returned the 33-count superseding indictment against Brian Busby, 43, and HISD contract vendor Anthony Hutchison, 61, this morning. They are expected to make their appearances before a U.S. magistrate judge in the near future.
Both were originally charged Dec. 14, 2021, alleging they conspired to engage in a bribery scheme. Busby allegedly helped award HISD construction and grounds maintenance contracts to Hutchison in return for cash bribes and hundreds of thousands of dollars in home remodeling. The new charges allege they filed false tax returns that underreported their income – income related to the scheme. Hutchison also overstated cost of goods sold on his returns.
Specifically, Hutchison obtained cash he used to pay bribes to HISD officials by writing company checks to vendors, who cashed the checks and provided the cash to Hutchison. Hutchison falsely stated on the memo line of the checks that they were in payment for work that had been performed on HISD properties. He then caused the checks to be improperly deducted on corporate tax returns as business expenses.
Hutchison also caused his gambling losses to be improperly deducted on corporate tax returns as alleged business expenses his companies incurred on HISD construction or landscaping projects.
Busby concealed his involvement in the bribery scheme by making cash deposits of bribe proceeds into multiple bank accounts and by filing false tax returns that failed to declare the cash bribes and other benefits as income.
To date, five others have pleaded guilty in relation to the scheme – Rhonda Skillern-Jones (former HISD Board of Education president), 39, Houston; Derrick Sanders (officer of construction services), 50, Alfred Hoskins, (general manager of facilities, maintenance and operations), 58, Gerron Hall (area manager for maintenance – south), 48, all of Missouri City; and Luis Tovar (area manager for maintenance – north), 39, Huffman.
As part of their pleas, Hoskins, Sanders, Hall, Tovar and Skillern-Jones admitted to conspiring with Busby and Hutchison to accept Hutchison’s bribes for helping to award, or not interfering in the award of, HISD contracts to Hutchison.
Once Busby and Hutchison learned of the federal criminal probe, they took steps to interfere in the investigation, according to the charges.
Busby and Hutchison are charged with conspiracy, bribery concerning programs receiving federal funds, and witness tampering. Hutchison is further charged with wire fraud. If convicted, they face up to five, 10 and 20 years, respectively, for the conspiracy, bribery and witness tampering charges. Hutchison also faces up to 20 years for each count of wire fraud. The charges added today add possible 3-year-prison terms for each of the tax charges, upon conviction.
All of the charges also carry a $250,000 maximum possible fine.
The FBI and the IRS – Criminal Investigation are conducting the investigation. Assistant U.S. Attorney (AUSA) Robert S. Johnson is prosecuting the case. AUSA Kristine Rollinson is handling forfeiture matters.
Busby and Hutchison are presumed innocent unless convicted through due process of law.
The FBI requests any information the public may have about this scheme or other public corruption crimes affecting the greater Houston community and surrounding areas. Anyone with such information may report it at HoustonCorruption@FBI.gov or may submit the information anonymously by phone at 1-800-CALL-FBI or online at Tips.FBI.gov.
Topic(s):
Public Corruption
Component(s):
USAO – Texas, Southern
LISTED FOR SALE MAR 17, 2021 ($1.95M) - REMOVED MAY 3, 2022 ($1.5M)
Lawyers Don't Get Criminally Charged with Tax Evasion in Houston, Texas
See; Harris County District Court Cases:
202013586 – OVATION SERVICES LLC vs. SOUTHWEST WHOLESALE LLC
2017 FORECLOSURE OF IVANHOE PROPERTY WITH COMMERCIAL MORTGAGE [BALLOON] ON RES. PROPERTY
Ray avers, pro se, that the commercial mortgage balloon payment was set for refinance until ‘unfortunately’ 2 tax liens hit his credit…See; Harris County District Court Case 201774626 – SHACKELFORD & ASSOCIATES LLC vs. ICON BANK OF TEXAS N A
When we reviewed Zillow, we found the property had been listed for sale and recently removed.
1406 Southmore Blvd, Houston, TX 77004
SHACKELFORD & ASSOCIATES, LLC, et al
SHACKELFORD & ASSOCIATES, LLC [MAILING ADDRESS]
Houston Lawyer Ray L. Shackelford is listed as the Registered Agent for Hutchison’s business entity, Southwest Wholesale, LLC, and has been for a decade or more.
No. 1406 Southmore Blvd Doesn't Exist per HCAD
THE LAW OFFICE OF SONYA CHANDLER [ANDERSON]
Now in Humble as at 2022, Sonya Chandler Anderson, Sonya’s office was previously listed at 1406 Southmore Blvd.
SHACKELFORD & ASSOCIATES, LLC [COMPUTER SOFTWARE SVCS]
Listed on a page created by the Law Offices of Sonya Chandler Anderson
PPP Loans for the Shackelfords
RAY SHACKELFORD & CHARLENE SHACKELFORD [DANIELS]
Charlene Daniels PPP loan data states its for a male business, operating for less than 2 years. This conflicts with the 25-37 years she has on her linked in profile.
Charlene Daniels received a PPP loan for $20,832 from Cadence Bank on May 11, 2020. The loan was fully forgiven as we cannot see it being fully repaid. She received the exact same loan [payroll] amount as attorney Ray Shackelford in his second PPP loan.
Charles Shackelton aka Charlene Daniels
200936679- 7
Disposed (Final)
TAYLOR BEAN & WHITAKER MORTGAGE CORP vs. DANIELS, CHARLENE H
6/10/2009151CivilDECLARATORY JUDGMENT 200706738- 7
Disposed (Final)
HOUSTON MORTGAGE AND REAL ESTATE EQUITIES INC vs.
LAWYERS TITLE INSURANCE CORPORATION
2/6/2007270CivilBREACH OF CONTRACT 200469142- 7
Disposed (Final)
JP MORGAN CHASE BANK (AND ITS SUCCESSORS vs. DANIELS, CHARLENE H
12/6/2004 295 CivilForeclosure – Home Equity-Expedited 200422893- 7
Disposed (Final)
JPMORGAN CHASE BANK (OR ITS SUCCESSORS O vs.
DANIELS, CHARLENE H
5/3/2004 295 CivilForeclosure – Home Equity-Expedited 200061929- 7
Disposed (Final)
WOODFOREST NORTH SECTION II HOMEOWNERS A vs. DANIELS, ROBERT III12/1/2000127
Civil DECLARATORY JUDGMENT
Southwest Wholesale LLC’s List of Real Estate
PER HCAD, SCREENSHOT OCT. 1, 2022
Anthony Hutchison’s List of Real Estate
PER HCAD, SCREENSHOT OCT. 1, 2022
SOLD ON SEP. 15, 2022 PER ZILLOW, NOT REFLECTED ON HCAD YET
NOT LISTED FOR SALE ON ZILLOW
JUDGMENT RE EL PASEO ST CONDO - DEUTSCHE BANK NATIONAL TRUST COMPANY AS TRUSTEE ON vs. HUTCHISON, ANTHONY
United States v. Hutchison
(4:21-cr-00588)
District Court, S.D. Texas. Judge Andrew Hanen
DEC 14, 2021 | REPUBLISHED BY LIT: OCT 1, 2022
Unsurprisingly, the Trial delayed once more, from Oct 2023 to January 2025.
AMENDED SCHEDULING ORDER as to Anthony Hutchison, Brian Busby.
Motion Filing due by 12/6/2024.
Responses due by 12/20/2024.
Pretrial Conference set for 1/22/2025 at 08:30 AM in Courtroom 9D before Judge Andrew S Hanen.
Jury Trial set for 1/27/2025 at 09:00 AM in Courtroom 9D before Judge Andrew S Hanen
( Signed by Judge Andrew S Hanen) Parties notified. (rsh4) (Entered: 06/10/2024)
U.S. District Court
SOUTHERN DISTRICT OF TEXAS (Houston)
CRIMINAL DOCKET FOR CASE #: 4:21-cr-00588-1
| Case title: USA v. Hutchison et al | Date Filed: 12/14/2021 |
| Date Filed | # | Docket Text |
|---|---|---|
| 10/25/2023 | 80 |
AMENDED SCHEDULING ORDER as to Anthony Hutchison, Brian Busby. Motion Filing due by 5/3/2024. Responses due by 5/17/2024. Pretrial Conference set for 6/3/2024 at 08:30 AM in Courtroom 9D before Judge Andrew S Hanen. Jury Trial set for 6/10/2024 at 09:00 AM in Courtroom 9D before Judge Andrew S Hanen ( Signed by Judge Andrew S Hanen) Parties notified. (RhondaHawkins) (Entered: 10/25/2023) |
| 10/26/2023 | 81 | NOTICE OF ATTORNEY APPEARANCE: Aisha Japera Dennis appearing for Anthony Hutchison , filed.(Dennis, Aisha) (Entered: 10/26/2023) |
| 11/16/2023 | 82 | Joint MOTION to Continue by Anthony Hutchison as to Anthony Hutchison, Brian Busby, filed. (Attachments: # 1 Proposed Order)(Brevorka, Jennifer) (Entered: 11/16/2023) |
| 11/20/2023 | 83 | AMENDED SCHEDULING ORDER as to Anthony Hutchison, Brian Busby. Motion Filing due by 8/9/2024. Responses due by 8/23/2024. Pretrial Conference set for 9/9/2024 at 08:30 AM in Courtroom 9D before Judge Andrew S Hanen. Jury Trial set for 9/16/2024 at 09:00 AM in Courtroom 9D before Judge Andrew S Hanen ( Signed by Judge Andrew S Hanen) Parties notified. (RhondaHawkins) (Entered: 11/20/2023) |
| 11/30/2023 | 84 |
NOTICE of Withdrawal of Attorney for Defendant Anthony Hutchison by Anthony Hutchison as to Anthony Hutchison, Brian Busby, filed.(Lewis, Armstead) (Entered: 11/30/2023) |
| 05/14/2024 | 85 |
NOTICE OF SETTING as to Anthony Hutchison, Brian Busby. Status Conference set for 5/29/2024 at 10:00 AM in Courtroom 9D before Judge Andrew S Hanen, filed. (rsh4) (Entered: 05/14/2024) |
| 05/21/2024 | 86 |
NOTICE OF RESETTING as to Anthony Hutchison, Brian Busby. Status Conference set for 6/7/2024 at 11:30 AM in Courtroom 9D before Judge Andrew S Hanen, filed. (rsh4) (Entered: 05/21/2024) |
| 06/07/2024 | 87 | AMENDED SCHEDULING ORDER as to Anthony Hutchison, Brian Busby. Motion Filing due by 12/6/2024. Responses due by 12/20/2024. Pretrial Conference set for 1/22/2025 at 08:30 AM in Courtroom 9D before Judge Andrew S Hanen. Jury Trial set for 1/27/2025 at 09:00 AM in Courtroom 9D before Judge Andrew S Hanen ( Signed by Judge Andrew S Hanen) Parties notified. (rsh4) (Entered: 06/10/2024) |
| PACER Service Center | |||
|---|---|---|---|
| Transaction Receipt | |||
| 06/30/2024 11:21:58 |
Jury Trial set for 1/22/2024 at 09:00 AM in Courtroom 9D before Judge Andrew S Hanen
U.S. District Court
SOUTHERN DISTRICT OF TEXAS (Houston)
CRIMINAL DOCKET FOR CASE #: 4:21-cr-00588-1
| Case title: USA v. Hutchison et al | Date Filed: 12/14/2021 |
| Date Filed | # | Docket Text |
|---|---|---|
| 02/03/2023 | 62 |
Joint MOTION to Continue Motions Deadline, Pretrial Conference and Trial by Anthony Hutchison as to Anthony Hutchison, Brian Busby, filed. (Attachments: # 1 Proposed Order)(MacVane, John) (Entered: 02/03/2023) |
| 02/08/2023 | 63 | AMENDED SCHEDULING ORDER as to Anthony Hutchison, Brian Busby. Motion Filing due by 11/17/2023. Responses due by 12/1/2023. Pretrial Conference set for 1/16/2024 at 08:30 AM in Courtroom 9D before Judge Andrew S Hanen. Jury Trial set for 1/22/2024 at 09:00 AM in Courtroom 9D before Judge Andrew S Hanen ( Signed by Judge Andrew S Hanen) Parties notified. (rhawkins) (Entered: 02/08/2023) |
| PACER Service Center | |||
|---|---|---|---|
| Transaction Receipt | |||
| 02/24/2023 20:29:05 |
Any request by Hutchison has been approved by Judge Hanen, from bein’ allowed to intimidate witnesses, to lenient bond conditions, to travel requests.
U.S. District Court
SOUTHERN DISTRICT OF TEXAS (Houston)
CRIMINAL DOCKET FOR CASE #: 4:21-cr-00588-1
| Case title: USA v. Hutchison et al | Date Filed: 12/14/2021 |
| Date Filed | # | Docket Text |
|---|---|---|
| 09/15/2022 | 56 | Unopposed MOTION to Amend Bond Conditions by Anthony Hutchison, filed. (Quinones, Letitia) (Entered: 09/15/2022) |
| 09/16/2022 | 57 | ORDER granting 56 Motion to Amend Bond Conditions as to Anthony Hutchison (1).(Signed by Judge Andrew S Hanen.) Parties notified.(jdav, 4) (Entered: 09/16/2022) |
| 10/04/2022 | 58 | Unopposed MOTION to Travel by Anthony Hutchison, filed. (Quinones, Letitia) (Entered: 10/04/2022) |
| 10/05/2022 | 59 | ORDER granting 58 Motion to Travel as to Anthony Hutchison (1).(Signed by Judge Andrew S Hanen.) Parties notified.(jdav, 4) (Entered: 10/05/2022) |
| 11/03/2022 | 60 | Unopposed MOTION to Travel by Anthony Hutchison, filed. (Quinones, Letitia) (Entered: 11/03/2022) |
| 11/07/2022 | 61 | ORDER granting 60 Motion to Travel as to Anthony Hutchison (1). Travel from 11/9/2022 to 11/11/2022 to Magnolia, Arkansas. Travel from 11/12/2022 to 11/26/2022 to Lexington, Kentucky..(Signed by Judge Andrew S Hanen.) Parties notified.(rhawkins) (Entered: 11/07/2022) |
| PACER Service Center | |||
|---|---|---|---|
| Transaction Receipt | |||
| 11/14/2022 13:11:14 |
We’ll be trackin’ the criminal case against Hutchison in Houston federal court before Judge Hanen. Bookmark for updates.
United States v. Hutchison
(4:21-cr-00588-1)
District Court, S.D. Texas. Judge Andrew Hanen
DEC 14, 2021 | REPUBLISHED BY LIT: OCT 1, 2022
United States v. SEALED
(4:21-cr-00491)
District Court, S.D. Texas
District Court, S.D. Texas. Judge Andrew Hanen
OCT 13, 2021 | REPUBLISHED BY LIT: SEP 28, 2023
HISD’s former COO faces new tax charges in relation to bribery scheme
APR 22, 2022 | REPUBLISHED BY LIT; OCT 1, 2022
HOUSTON, Texas (KTRK) — Houston Independent School District’s former chief operating officer and a former landscaping contractor for the district face new tax charges related to an alleged bribery scheme involving millions in taxpayer funds.
On Thursday, the U.S. Attorney’s Office announced a federal grand jury returned a 33-count superseding indictment on former HISD COO Brian Busby, 43, and Southwest Wholesale owner Anthony Hutchison, 61.
The two are accused of allegedly filing false tax returns that underreported their income as it relates to the bribery scheme.
“Busby allegedly helped give HISD construction, grounds and maintenance contracts to Hutchison. In return, he got cash bribes and hundreds of thousands of dollars in home remodeling,” Acting U.S. Attorney Jennifer Lowery said during a Thursday news conference announcing the indictments. “Even more, Hutchison caused gambling losses to be improperly deducted on corporate tax returns and Busby underreported his income.”
The indictment comes two years after the FBI raided HISD’s administration building and Busby’s home in 2020. During that raid, about $90,000 in cash was seized from Busby’s home and $95,000 in cash was seized from Hutchison.
Hutchison is also accused of overstating the “cost of goods sold on his returns.”
“Hutchison obtained cash he used to pay bribes to HISD officials by writing company checks to vendors, who cashed the checks and provided the cash to Hutchison. Hutchison falsely stated on the memo line of the checks that they were in payment for work that had been performed on HISD properties.
He then caused the checks to be improperly deducted on corporate tax returns as business expenses,”
according to a news release from the U.S Attorney’s Office.
“Hutchison also caused his gambling losses to be improperly deducted on corporate tax returns as alleged business expenses his companies incurred on HISD construction or landscaping projects.”
Letitia D. Quinones, one of Hutchison’s attorneys, said she’s looking forward to going to trial so Hutchison can share his position.
“It’s not often that the government charges you that you look forward to going to trial,”
Quinones said.
“We do believe that after a jury hears all the evidence in this case, they will seriously consider whether Mr. Hutchison has violated any federal laws.”
Quinones said a judge previously ruled there was no probable cause to seize funds from Hutchison.
Busby’s attorney, Dick DeGuerin said in a statement to 13 Investigates that “Brian Busby served honestly and honorably the people of Houston Independent School District for over 20 years, rising from janitor to chief operating officer. He never took a penny that he wasn’t entitled to and he’s always honest when he reported his income tax and I’m sure that a fair jury will find that.”
Both attorneys said they were surprised by the additional charges. DeGuerin added, “they’ll hold about as much water as the other charges. They’re tax counts and it’s kind of an added insult.”
The FBI’s investigation dates back to 2018.
Investigators believe Busby and Hutchison are part of an alleged kickback scheme that totaled about $7 million in HISD funds over a seven-year span. Investigators allege Hutchison billed HISD millions for work it was contracted to perform but never completed.
Southwest Wholesale’s landscaping contract with the district called for “35 cuts per property per year, although only 20 cuts per property per year were performed,” according to court documents filed last year. From 2013 to 2019, the contractor allegedly overbilled HISD anywhere from $604,928 to $991,694 annually.
The court documents allege Busby “shared in those proceeds by receiving kickbacks and benefits from the contractor, including payments in cash.”
Nitiana Mann, assistant special agent in charge at the FBI’s Houston office, said public corruption is one of their local office’s top priorities.
“The FBI here in Houston aimed to determine whether these defendants allegedly accepted hundreds of thousands of dollars in cash bribe payments in exchange for multimillion-dollar contracts which are all funded by our taxpayer dollars,” Mann said. “Public corruption is not a violent crime, however, it is not a crime without a victim. Potential victims for this potential crime in which we’re discussing today often include our students, our taxpayer dollars, our faculty and our staff of the independent school district.”
Houston ISD superintendent Millard House II, who was not at the district when Busby was employed, has said he’s dedicated to rebuilding trust with the community that taxpayer funds are being spent responsibly.
“(Thursday’s) indictments of a former district official and vendor are a stark reminder of the responsibility this district has to operate with integrity in everything it does. Our students, families, employees and community deserve nothing less. I hope that with today’s indictments, this district, and the community it serves can finally turn the page on a sad chapter in HISD’s history,” House said in a statement on Thursday. “We are appreciative of all the work the FBI has done to hold those accountable who would seek to undermine public trust in the district and will continue to fully cooperate with the investigation.”
House also said the district has “put stringent measures into place to safeguard the integrity of the district’s procurement and contracting processes moving forward.”
Five other people have pleaded guilty in charges related to the alleged bribery scheme.
Former HISD Board of Education President Rhonda Skillern-Jones previously entered a plea agreement related to the conspiracy charge. Other former HISD officials, including Derrick Sanders, 50; Alfred Hoskins, 58; Gerron Hall, 47; and Luis Tovar, 39, also entered a plea agreement for the conspiracy charge.
“As part of their pleas, Hoskins, Sanders, Hall, Tovar and Skillern-Jones admitted to conspiring with Busby and Hutchison to accept Hutchison’s bribes for helping to award, or not interfering in the award of HISD contracts to Hutchison,” according to a news release.
Investigators say once Busby and Hutchison learned of the probe, they attempted to interfere with the investigation. Both are charged with conspiracy, bribery involving federal funds and witness tampering. Hutchison is also charged with wire fraud.
Felon Marc Trammell-Wade and Sanctioned Shack Enters District Court With a Full Non-Disclosure Petition
Ancillary Judge Payne ain’t interested in the facts, just a quick disposal granting the legal bandit and his bankrupt client a $500 TRO.
Harris County Criminal Magistrate Judge Sharon Chu aka Muharib’s Bad Faith Bankruptcy Dismissed
Jan. 2024: The judges of Harris County District Courts appointed Sharon Chu Criminal Law Hearing Officer. In federal court, this happened.
Bail Bond Co. Owner: Sheba Muharib’s Egregious Perjury in Application for Federal Public Defender
As we’ve learned during our investigations, non-disclosure, perjury and falsifying statements is mandatory and excusable in Texas courts.
PNC BANK, NATIONAL ASSOCIATION VS RAY L SHACKELFORD
1220455 HARRIS COUNTY CIVIL COURT, JUDGE JIM KOVACH
FEB 1, 2024
Debt collection case filed Jan 29, 2024
The citation for his $3.5k debt to PNC is goin’ to 4743 Ivanhoe St., Houston, not his new $2 million dollar mansion….
T H E S H A C K
If you dont pay @IRS_CI @USAO_SDTX taxes and you’re a crooked lawyer, but are friends of the courts, you too can own a home like this and obtain a 1.5M mortgage despite your lawsuits which convey a story more akin to in forma pauperis https://t.co/QMPHhG4CIX pic.twitter.com/H1EcNNJSDW
— lawsinusa (@lawsinusa) August 4, 2023
